Expanding Desmos Validator Community
We value the contribution of validators. They have helped the project since the very first testnet. Now, after nearly 5 months of mainnet launch and the successful listing of Desmos Tokens ($DSM) on Osmosis, it’s time to push forward the development of Desmos validator community.
Flashback: DSM reward for our validators during testnet
Back in Apr 2021, we have allocated more than 2.3 million DSM (2.3% of genesis supply) to validators who have joined our incentivized testnet which last for more than 6 months. This helped us to distribute the stakes to people who have made promising contributions to the project.
Staking yield of DSM
The mainnet has been up and running for more than 5 months. Currently, the bonding ratio is standing at 63% which is a healthy level while the staking of DSM is still providing 86% APR.
LP yield on Osmosis
We have finally launched mainnet on 31 Aug 2021 and listed $DSM on Osmosis on 13 Jan 2022. After the various Osmosis proposals and external incentives, the current DSM pools on Osmosis are providing decent return. As of this writing, DSM/OSMO Pool is providing a maximum of 209% APR (OSMO LP incentives+ DSM external incentives).
Our suggestion: expand Desmos validator set to 125
With all these rewards, Desmos is providing a healthy economics to our contributors. With all the exciting plan we are going to launch later, we think this is the right time to expand Desmos validator set to 125 to attract more talents to join our ecosystem. With this change, we want to achieve these:
- We can attract more teams to build on Desmos. By running a validator on Desmos, they can become more familiar with our stack while getting some income to support their development.
- By providing staking services, ecosystem projects can also gain more tractions for their projects being built on Desmos.
- We can expand the network of contributors. They are more motivated to promote Desmos because they have skin in the game.
- Our overall go-to-market strategy is to acquire users from the blue oceans. This means we will do more localization. The expansion of validator set can create more rooms for us to reach the teams who are new to crypto space but are also talented to build great stuff.
Next step
This post will notify our staking community and probably will start some discussion. We will then make a on-chain proposal for this change, probably after 1 or 2 weeks.
